Total net export sales for the week ending Jan 21 were lower vs the previous sales period at nearly 159K running bales while shipments were somewhat higher at nearly 163K running bales. Net sales were above the weekly pace required to meet the USDA’s 10M bale export target while shipments continue to significantly lag the pace requirement. Sales cancelations were lower Vs the previous report at 8K running bales. Total commitments against the 2015/16 marketing year are now nearly 60% of the USDA’s export projection and sales and shipments will need to average approximately 145K and 247K running bales per week, respectively, in order to meet the target.
The latest sales figures are somewhat disappointing, given the price action over the most recent sales period. And, although the shipment pace quickened, it was not enough. Combined with strength in US currency today and index fund rolling, Mar cotton futures could struggle.
